Dubai accounting and tax considerations

Tetra Consultants provides Dubai accounting and tax service. It is important for our international clients to stay compliant with Dubai accounting and tax regulations. Our accounting team will assist with your business’ annual returns, financial statements, tax compliance and bookkeeping.

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Dubai accounting and tax services

Many clients choose to outsource their Dubai accounting and tax obligations to Tetra Consultants. Tetra Consultants will timely complete your firm’s financial statements, corporate tax returns and manage auditors on your behalf and without the need to travel.

By outsourcing accounting and tax obligations to Tetra Consultants, you can reduce overhead costs while being ensured of timely reporting and filings. Our accounting team will explain to you all the required deadlines and expectations before the start of the engagement.

Thereafter, our team will prepare the required fillings in advance to ensure we meet all stipulated deadlines. Tetra Consultants will send a weekly or bi-weekly update to you, ensuring all parties are aware of upcoming deadlines.

Contact us now for a free consultation. Our team of experts will revert within the next 24 hours.

Annual Reporting Requirements

  • Companies are mandated to provide an annual activity report as per audited by an auditor to the Ministry of Finance (for trading companies) or to the Ministry of Energy and Industry (for industrial companies). Only upon submission will the company’s license be renewed.
  • Annually, businesses are also required to file International Financial Reporting Standards financial declarations with the Ministry of Commerce. Audited financial accounts have to be submitted to the authority within 90 days of a Free Zone company’s financial year-end.
  • However, this deadline is flexible and an extension can be requested, if needed. Companies also have to prepare an annual return confirming details of the business for the public register. Tetra Consultants will continue to advise and clarify any doubts that you may have with regards to their annual reporting obligations.

Tax

  • Resident companies and individuals are generally exempted from personal income tax and corporate tax. However, they may still be liable for customs duties of 5% for any imports. Limited only to oil and bank companies, a 55% corporate income tax or a 20% tax rate is applied respectively.
  • While Dubai’s seemingly no-tax paradise seems too good to be true, it is also important to note that value added tax may apply.

Value Added Tax

  • Introduced in January 2018, a VAT rate of 5% has been placed on particular goods and services. This tax applies to companies who are active in the jewelry, tobacco, luxury cars and alcohol industry. Registration in VAT is mandatory if taxable supplies exceed AED 375,000.
  • Tetra Consultants will assist you when it comes to setting up a VAT account. VAT returns are to be filed online by the 28th day of the month following the end of the reporting quarter. For other non-essential goods, an excise tax is also applicable.

Other tax considerations

  • Nonetheless, it is also worthwhile to note the Double Taxation Avoidance Agreements that Dubai enforces. This eliminates any double taxation incidences and negates any difficulties that may come along when doing cross-border trade and investment flows.
  • It is important that you are aware of your personal and corporate tax obligations. To assist you, Tetra Consultants will inform and advise you to ensure that they fulfil those obligations annually.

Contact us now for a free consultation on Dubai accounting and tax considerations. Our team of experts will revert within the next 24 hours.

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